States told to push movement of imported sugar

NEW DELHI: The Centre on Thursday said it has asked states to facilitate the movement of imported raw sugar from ports to the mills as it will help augment domestic supplies.

"I know there is an issue. We have written to the state governments to facilitate movement of imported raw sugar lying at ports," minister of state for food and agriculture KV Thomas told reporters on the sidelines of a function here.

"There is a shortage of sugar in the country. We are trying to augment supplies," Mr Thomas added.

Large quantities of raw sugar imported last season are still lying at ports as the country's second largest sugarcane producer Uttar Pradesh restricted the supply of imported raw sugar in the midst of protest by cane farmers over remunerative prices for their crop.

Last month farmers in Uttar Pradesh were on agitation demanding higher cane price.

Indian Sugar Mill Association (ISMA) acting director general MN Rao said since restriction on movement of imported raw sugar in Uttar Pradesh was for a brief period during the farmers agitation, the state government is yet to issue a formal clarification.

Moreover, he said railways is not making available wagons for imported raw sugar as it fears damage to its property in the absence of any formal clarification from the state government to allow imported raw sugar in to Uttar Pradesh.

Last month Uttar Pradesh cabinet secretary Shashank Shekhar Singh said: "We have requested the Centre that raw sugar should not be supplied till crushing of cane is completed."

Initially raw sugar was supplied in the state which led to agitation by farmers, Mr Singh said. The country imported five million tonnes of raw sugar since February in the 2008-09 season to tide over a shortfall in domestic production. While this year too, fear of fall in output has raised prospects of large imports. Sugar season runs from October to September.

India, the largest sugar consumer in the world produced about 15 million tonnes in the 2008-09 season and is projected to produce about 16 million tonnes this season. The country needs about 23 million tonnes for its annual consumption. Sugar prices in the last one year have surged to Rs 38 a kg on concerns of shortfall in production.